Unit 6 Review

**** can be defined as a situation

involving exposure to danger

What risks might entrepreneurs be exposed to in the

business world?

• Financial

• Lots of personal time

• Reputational

• Competition

Act of purchasing assets (stocks, bonds, property) with expectation that they will increase in value over time.

• Withdrawing
• Depositing
• Time Value of Money
• Investing

Retirement account that allows investors to make tax-deductible contributions. Individuals are responsible for setting up and managing the account.

• 401K
• IRA
• 403B
• Social Security

A plan in which an employer guarantees a certain sum of money to the employee based on the number of years of service upon retirement.

• 401K
• Defined Contribution Plan
• Pension
• IRA

Refers to the likelihood that an investment will decrease in value.

• Chance
• Gamble
• Stake
• Risk

A portion of your income that you do not spend on your current needs, but instead set aside for future needs.

• Collateral
• Discretionary Income
• Savings
• Net Worth

The phrase "Not putting all your eggs in one basket" means to

• invest in the same stock.
• invest in dairy stock
• invest in livestock
• invest in different types of stock.

Defined contribution retirement account that is taken out of your paycheck before you pay any taxes on this income.

• IRA
• Roth IRA
• 401K
• Pension

What is the difference between a Traditional and Roth IRA?

• A traditional IRA's contributions are not taxed until you withdraw them at retirement. A Roth IRA's your contributions are taxed when you invest.

• A Roth IRA's contributions are not taxed until you withdraw them at retirement. A Traditional IRA your contributions are taxed when you invest them in.